Chinese direct investment to Ethiopia has reached $900 million, making Ethiopia one of China’s biggest investment destinations in Africa.
According to local media reports, Chinese investments in Ethiopia are on the rise since the past three years where a number of Chinese investors started engaging in various investment opportunities in the country.
It was reported that road construction, telecommunication, medicine and other small scale enterprises are the sectors which the Chinese investors are mostly involved in.
The on going investment by the Chinese investors are being carried out by the Chinese-Africa-Development Forum, which is a Chinese government initiative which aims at promoting investment in Africa.
The Chinese government is also supporting various development projects being carried out in Ethiopia, like the on-going Tekeze Hydro-electric project and telecommunication infrastructure.
It is also reported that the trade volume of the two countries has reached $1.3 billion. For last year alone, according to the report, Chinese exports to Ethiopia increased by 51%.
It was reported that in order to balance the trade volume between the two countries, the Chinese government has given to Ethiopia quota free export opportunities for over 450 products, which Ethiopia is trying to utilize.